Prime Meridian launches free tax filing with support of former IRS commissioner

Prime Meridian, a tax solutions provider, officially launched today with a free tax filing solution supported by former IRS Commissioner Danny Werfel, who is serving as a strategic advisor for the new company. 

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“Americans should have access to a free, easy-to-use platform that guides them through filing their taxes with clarity and confidence,” said Werfel in a statement. “As the landscape evolves, it is increasingly important for private sector innovators to step forward and deliver credible, truly free options. Prime Meridian represents the kind of responsible new entrant that can expand access while maintaining accuracy, transparency and trust.”

The platform uses AI to guide users through tax decisions in a four-step process, from uploading documents to finally submitting the return, for free. The company says there are no hidden fees or surprise limitations. A Prime Meridian spokesperson said in an email that while there are other ostensibly free tax-filing options, often there is a fee due to the return not meeting certain requirements, or there are additional costs for state filing.  

“Right now, ‘free’ means either an inferior experience or misleading marketing when it comes to tax preparation,” said the spokesperson. “Prime Meridian’s goal is to provide a best-in-class experience while being free. Prime Meridian is clear and upfront that there are no fees for any filers who use the platform – from a straightforward W-2 employee, to someone with multiple sources of income across states or a filer who has received a K-1. And that’s true for both federal and state returns. We believe that this transparency is a selling point when a filer is deciding which platform to trust with their 2025 return.”

Prime Meridian is intended for individual taxpayers, to address the filing needs of low-income individuals while also being capable of handling more complex situations, including K-1s, multiple sources of investment income, and multistate wages. Asked how the company intends to make money, the spokesperson said the main focus is on providing free tax services with the goal that no American will pay for tax filing in the future. But over time, the firm intends to introduce revenue-generating products down the line, potentially in the areas of payments, cards and investments.

Prime Meridian is backed by an investment from General Catalyst, with participation from Belief Capital, Calibration Capital and angel investors including Gokul Rajaram and the co-founders of Doordash, Turing, and Cambridge Aerospace. 

The spokesperson said the relationship with Werfel came after he wrote an op-ed last year, stating that he believed it was important for new entrants to create a robust marketplace for free tax filing solutions. As a result, early-stage companies began reaching out to him. He met Prime Meridian through General Catalyst (which led their seed funding), and it impressed him the most in terms of the strength of the tool and commitment to a truly free product. 

Werfel served as IRS commissioner between March 2023 and January 2025. During that time, he oversaw the launch of the free Direct File program for electronic filing. This program, however, was shuttered shortly after the new administration took power (although it did release the source code later). Werfel was not the only fan, as Sen. Elizabeth Warren, D-Massachusetts, introduced the Direct File Act last Friday in the Senate, along with Rep. Brad Sherman, D-California, in the House, joined by over 150 other lawmakers, with the support of 115 unions, advocacy groups and national organizations.